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Gujarat's Surat Municipal Corporation Lists Rs 200 Crore Green Municipal Bond on National Stock Exchange

Strategic Insights

— 1 min read

In a major milestone for sustainable urban finance, the Surat Municipal Corporation (SMC) has listed its Rs 200 crore Green Municipal Bond on the National Stock Exchange of India (NSE) in the presence of Gujarat Chief Minister Shri Bhupendra Patel. This is the first municipal corporation from Gujarat and only the second in India to access the municipal bond market through a public offering, underscoring the state's commitment to innovative and financially responsible urban development. The funds raised will support key climate-resilient projects in Surat, aligning with the Climate Bonds Initiative standards and SEBI's Green Debt Security Framework.

Key Takeaways:

  • The Surat Municipal Corporation's Rs 200 crore Green Municipal Bond was listed on the National Stock Exchange of India (NSE) on [no specific date mentioned].
  • The bond was oversubscribed eight times, with a base size of Rs 100 crore and a green-shoe option of Rs 100 crore.
  • The funds raised will support key climate-resilient projects in Surat, including solar and wind energy generation, zero-liquid discharge water treatment, advanced filtration systems, and certified green infrastructure.
  • The listed bond is aligned with SEBI's Green Debt Security Framework and the Climate Bonds Initiative standards.
  • Gujarat's Gandhinagar Green Bond was an earlier issuance of a similar nature, and more such bonds are in preparation, emphasizing the state's leadership in sustainable urban financing.
  • Shri Bhupendra Patel, Hon'ble Chief Minister of Gujarat, has expressed optimism about the bond's success, highlighting Gujarat's cities' reputation for innovation and fiscal responsibility.
  • Shri Ashishkumar Chauhan, MD & CEO, NSE, has congratulated SMC on its successful maiden public issue, crediting investors' confidence in credible green municipal issuances for the rare eight times oversubscription.

Statistics:

  • The bond issued by Surat Municipal Corporation is worth Rs 200 crore.
  • The base size of the bond is Rs 100 crore, with a green-shoe option of Rs 100 crore.
  • The bond has been oversubscribed eight times.
  • SEBI's Green Debt Security Framework and the Climate Bonds Initiative standards have been met by the issued bond.
  • Gujarat has a history of issuing green bonds, including the Gandhinagar Green Bond, indicating its commitment to sustainable urban finance.

Sources:

  • National Stock Exchange of India (NSE)
  • Contify.com

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